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Frequently Asked Questions
About Florrid
Florrid is a crowdfunding platform that operates in accordance with the European Crowdfunding Service Provider License (European Crowdfunding Service Provider Licence – ECSP), issued by the regulated entity and registered in Lithuania. We oversee Lithuania’s banks. Florrid provides an opportunity to receive money for their financing for investors – to invest in NT certified projects, to receive periodic interest and to diversify their investment portfolio.
The platform’s operations are supervised by the Bank of Lithuania, which ensures that all applicable legal, operational, risk management and transparency requirements are met.
This means that project selection, risk assessment, and investor information are all carried out according to unified and strict EU standards.
Both individuals and legal entities who are 18 years of age and have a valid identity document can invest on the Florrid platform.
Registration on the platform, account maintenance, investing and receiving interest are free of charge.
All platform operating costs are covered by fees charged to the project owner, so investors can invest and receive interest without additional service fees.
For Investors
In case of delays, late payment fees specified in the loan agreement are applied, which are paid to investors. The loan recipient is also urged to fulfill their obligations according to the conditions agreed in advance in the agreement. If the project owner continues to fail to meet obligations, liquidation of the pledged real estate may be initiated.
This is done in accordance with the procedures established in the agreement and by law, seeking to recover investor funds as effectively as possible. Recovered funds are distributed to investors proportionally to their investments, taking into account the agreement conditions and the established order of priority.
The investor recovers funds only when the project term ends or when the project owner makes an early loan repayment according to the agreement conditions.
When choosing a project, it is important to evaluate several key criteria that help make an informed decision suitable for your goals:
1. Interest rate and return potential
Evaluate the offered annual interest rate, payment schedule and project duration.
2. Risk class and collateral
Pay attention to the project risk category, LTV (loan-to-value ratio) and the type, value and location of the pledged asset.
The stronger the collateral, the higher the level of security.
3. Project owner’s experience and financial condition
Florrid provides information about the company’s creditworthiness, reputation, previous projects and financial indicators — all of this helps assess the project’s stability.
4. Project purpose and plan
Read the project description: what the funds will be used for, what the work plan is, how cash flows are generated and what the planned loan repayment strategy is.
A clear and well-founded plan increases the likelihood of success.
5. Diversification opportunities
Choose projects in different markets (Lithuania / Poland), sectors and different risk classes to reduce the impact of one project’s risk on the entire portfolio.
LTV (Loan-to-Value) is the ratio between the loan and the pledged asset value, expressed as a percentage.
It shows what portion of the loan is covered by the pledged real estate value.
LTV is calculated:
LTV = Loan amount / Pledged asset value × 100 %
Example:
If the loan is €100,000 and the pledged asset is worth €200,000, LTV = 50%. A lower LTV means that the pledged asset covers a larger portion of the loan and can be more easily liquidated if necessary.
Risk categories help investors quickly assess how risky a project is and what returns can be expected.
Each project on the Florrid platform is assigned a specific risk category from A+ to B- based on:
pledged asset value and liquidity,
LTV level,
project owner’s reputation and financial condition,
project type risk (development, working capital, refinancing, etc.),
cash flow stability,
additional security measures. Accordingly A+ – lowest credit risk, B- – higher medium credit risk.
An inexperienced investor is an investor who is not considered experienced under the European Crowdfunding Service Providers Regulation (ECSPR) and to whom additional protection measures apply.
This is an investor who:
does not have significant previous investment experience,
does not meet the criteria applied to experienced investors (e.g., does not have a large investment portfolio value or professional financial market experience),
has not provided documents proving that they can be classified as an experienced investor.
Additional protection measures apply to inexperienced investors:
Knowledge test designed to assess the investor’s ability to understand risks.
Investment sustainability assessment, helping to assess what investment amount is financially safe according to individual circumstances.
Risk warnings if the investment exceeds the safe limit.
More clarity and information is provided before investing.
These measures are designed to make investing safe, understandable and responsible, especially for beginners.
An experienced investor is an investor who meets the criteria set out in the European Crowdfunding Services Regulation and can be classified as having sufficient knowledge, financial capabilities and experience to invest in higher-risk projects.
Such an investor is subject to fewer restrictions, as it is assumed that they better understand investment risks.
Who can be considered an experienced investor?
This is a person who meets at least one of these criteria:
has significant investment experience or a higher-value investment portfolio;
has professional experience in the financial sector;
can provide documents or information confirming that they have the knowledge and competence to assess investment risk;
submits a request to the platform to be classified as experienced investors and passes the relevant tests and assessments.
The cooling-off period is a four calendar day period provided to inexperienced investors after they submit an investment offer. If the investor has made more than one investment in the same project, the cooling-off period is calculated from the date of the first investment and ends after four calendar days.
The purpose of this period is to provide an opportunity for the investor to calmly evaluate the decision, reconsider the risks and, if necessary, withdraw from the investment without any consequences.
If you can’t log in to your Florrid account, try these steps:
1. Check that you entered your email and password correctly
The most common problem is incorrectly entered login credentials.
If you’re not sure about your password, use the “Forgot password” procedure.
2. Check your email
Login may fail if:
your email has not been verified yet,
you accidentally entered a different email address than you registered with. If the problem doesn’t resolve, write to us at support@florrid.com
(provide your email, error screenshot and problem description).
For Project Owners
Loans are provided to companies (legal entities) that meet the Florrid platform’s risk assessment criteria. When selecting projects, we evaluate the company’s and its owners’ reputation and creditworthiness, business plan validity, pledged asset liquidity and other parameters.
2. Upon receiving all necessary information, the project evaluation process begins, which takes about 2-5 business days;
3. Approved projects are posted on the platform for investment collection;
4. Upon collecting the full or minimum investment amount and fulfilling all contractual obligations, the money is paid to the project owner according to the agreement conditions;
5. When the project ends, the project owner returns all borrowed funds, which are returned to investors.
The list of required documents may differ for each project, so the Florrid team, after contacting the project owner and conducting a preliminary project assessment, provides a list of required documents. The main documents are pledged asset valuation, company financial statements, project business plan.
Upon receiving all necessary documents, project evaluation can take up to 2-5 business days. The approved project is uploaded to the platform for investment collection. Upon collecting investments and fulfilling the signed agreement conditions, the funds are disbursed.
You can find all information about fees in the “Pricing” section.
Yes, it is possible. In case of early repayment, the project owner must pay investors the early repayment fee specified in the loan agreement.
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